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Case ECS 10/13: Albania / energy efficiency

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summary of the case

registered:

ex officio 2013

Directive 2006/32/EC defines energy efficiency as "a ratio between an output of performance, service, goods or energy, and an input of energy". The purpose of the Directive 2006/32/EC on energy end-use efficiency and energy services is to make the end-use of energy more economic and efficient by establishing indicative targets and incentives as well as the institutional, financial and legal frameworks needed to eliminate market barriers and imperfections which prevent efficient end-use of energy. Furthermore, the Directive calls for the creation of conditions for the development, the promotion of a market for energy services and for the delivery of energy-saving programmes and other measures aimed at improving end-use energy efficiency.

The Secretariat considers the transposition and application of the Directive in the Contracting Parties a priority and a symbol of the Treaty’s commitment for improving end-use energy efficiency in the Energy Community.In its implementation reports, the Secretariat repeatedly underlined that Albania needs to take substantial steps in order to transpose and implement Directive 2006/32/EC. The deadline for transposition expired at the end of 2011.

With the adoption of Decision 2018/03/MC-EnC, the procedure under Article 91 of the Treaty in Case ECS 10/13 is closed.

Case ECS 10/13 information requests

procedural history

The Energy Community Secretariat, acting under Article 90 of the Treaty through an Opening Letter, notes that Albania has not yet transposed and implemented the requirements of Directive 2006/32/EC on energy end-use efficiency and energy services. The deadline for transposition expired at the end of 2011.

Procedure

With the Opening Letter, the Secretariat initiates preliminary procedures in accordance with Article 12 of the Rules of Procedure for Dispute Settlement. The purpose of this initial step in the procedure is to give Albania the possibility to react to the allegation of non-compliance with Energy Community law as well as enable the Secretariat to establish the full factual and legal background of the case. Albania has been given the possibility until 25 January 2014 to comply of its own accord with the requirements of the Treaty, or to justify its position.

According to Articles 6 and 16 of the Rules of Procedure for Dispute Settlement, interested parties may be granted access to the case file and may submit written observations on the present case to the Secretariat within one month from 25 November 2013.

On 15 March 2017, the Secretariat submitted two Reasoned Opinions as the next step in the dispute settlement cases against Albania and Bosnia and Herzegovina.

Reasoning

In case of Albania, non-compliance involves the lack of secondary legislation necessary for the implementation of the Law on Energy Efficiency and the lack of adoption of a second Energy Efficiency Action Plan.

Procedure

With the present Reasoned Opinion, Albania is requested to rectify the identified issues of non-compliance within a time limit of two months.

After carrying out a preliminary procedure, the Secretariat submitted a Reasoned Request on Albania's failure to comply with the Energy Community’s rules on energy efficiency and in particular with regard to provisions related to energy audits, the exemplary role of the public sector and model contracts for financial instruments as well as the lack of adoption of an energy efficiency action plan.

On 2 February 2018, the Ministerial Council took a decision via written procedure on the failure by Albania to comply with certain obligations under the Treaty. By the this decision, the Ministerial Council decided that by the lack of adoption of secondary legislation for energy audits, legislation to ensure the exemplary role of the public sector, legislation on model contracts for financial instruments and the lack of submission of an Energy Efficiency Action Plan, Albania failed to comply with Articles 5(1), 9(2), 12(1) and 18(2) as well as Annex VI of Directive 2006/32/EC.

In Article 2 of the Decision, the ministers urge Albania "to rectify the breaches identified in Article 1 and ensure compliance with Energy Community law immediately ".

Procedure

Albania is asked to report to the Secretariat and the Permanent High Level Group about the measures taken. The ministers invited the Secretariat to initiate procedures under Article 92 of the Treaty if the breaches are not rectified.